<nobr>Oct 4, 2007</nobr>

ERIC Supports Enhanced Fee Disclosure, But Opposed to Chairman Miller's Approach

Washington, D.C. -- Lew Minsky, Senior Attorney for the Florida Power and Light Company, will testify before the House Education and Labor Committee on the 401(k) Fair Disclosure for Retirement Security Act of 2007 (H.R. 3185) on behalf of The ERISA Industry Committee (ERIC), Society for Human Resource Management (SHRM), National Association of Manufacturers (NAM), U.S. Chamber of Commerce (Chamber), and the Profit Sharing/401k Council of America (PSCA).

Minsky's testimony states that while the organizations "support enhanced fee disclosure, H.R. 3185 as presently drafted is flawed in many regards." Minsky argues that the business and employer groups are concerned that the bill's fee disclosure requirements are unlikely to provide meaningful information. "Indeed, the criticism levied against many of ERISA's current disclosure documents is that they are too long, overwrought with complexity, and therefore rarely, if ever, read." Minsky argues instead for "a simpler fee disclosure statement that participants would not only read but would readily understand in order to make the choices that are laid before them."

The organizations also urge that the Department of Labor be given a chance to complete its work on fee disclosure before Congress proceeds with new legislation. "We strongly believe that the additional flexibility inherent in the regulatory system makes the Department of Labor initiatives the appropriate vehicle for new disclosure requirements. Any new legislative requirements would likely only delay those efforts, resulting in delayed reforms," Minsky said.

According to the testimony, "[i]f the Committee proceeds with H.R. 3185, we recommend a comprehensive rewrite that ensures a more streamlined regime. Any other result could jeopardize the future of the defined contribution system -- similar to what has happened to the overregulated defined benefit system -- at a time when retirement security is critical for American workers."

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For more information:

Ted Godbout
Manager, Communications
The ERISA Industry Committee
1400 L Street, NW, Suite 350
Washington, DC 20005
Phone: (202)789-1400
Fax: (202)789-1120
E-mail: tgodbout@eric.org
www.eric.org


Text Files:

Lew Minsky's Testimony

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